After trading sideway for past 4 months sembcorp finally breaking out from its resistance and could be heading to $4.50 on midterm target.
I’m rather bullish with its market action today.
November 2009
Sembcorp consolidation ends
19
November
STX Pan Ocean
18
November
This stock moves along the BDI strength. And if you look at its chart, it’s still at the base and may breakout from current consolidation.
http://www.panocean.com/
What to buy?
09
November
Singapore market can be segmented into 3 categories and these affect buying habits of the underlying investors.
The first segment is blue chips.
The blue chips such as major 3 banks (DBS/UOB/OCBC), Kepcorp, Capitaland, Citydev, Singtel enjoy strong institutional support. They’ve proven their sustainable earning over many bear market cycles and emerge stronger during positive economy outlook.
The movement of these stocks are mostly reflected in the main index, and inline with the macro economy of the country. Bluechips are mostly the least volatile as compared to other segments
(more…)
Noble: shortterm downtrend ends
09
November
Noble has completed its retracement on thursday and confirmed the reversal last Friday by breaking the mini downtrend line (see red line).
The gap during today’s opening showing the strength of this stock.
From recent pattern it has been always travelling within a channel and the next upper resistance will be around $3.
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Noble Group Ltd: Best proxy to economic recovery
Summary: Noble Group Ltd (Noble) has recently strengthened its balance sheet via an equity placement and a separate non-convertible bond issue, raising net proceeds of over US$1.4b. The group’s enhanced capitalisation not only equips it with financial flexibility for acquisitions, it also ensures sufficient working capital in the event of a surge in commodities prices. Furthermore, the bond issue effectively extends the group’s debt maturity profile. We expect commodities to be key beneficiaries of an economic recovery and highlight Noble as our preferred pick within this sector by virtue of its diverse exposure to hard and soft commodities, coupled with a strong balance sheet and proven execution. We maintain our BUYrating on the stock and raise our fair value estimate to S$3.14 (from S$2.67) based on 17x FY10F PER. (Lee Wen Ching)
SGX is a good market indicator
03
November
One of the accurate indicator I use to look at mid term market movement is the price behavior of SGX.
SGX is the first to turn around during the March bottom and it’s also the stock to have stalling behavior over the past 2.5 months.
The midterm uptrend is still intact but the shortterm movement is heading down:
1. The price trades too long below 50 days MA
If we see the brief penetration in June/July, we could see it as consolidation.
The current penetration below 50 MA is far too long and the MA itself is bending down.
2. It is forming downward sloping channel.
This mini channel is mini trend. One positive note is that it’s currently supported by the channel which is not steep.
The slope will accelerate if the current support is broken.
as no one knows for sure the next minute of market movement, it maybe worth to look at leading indicators and stay defensively at this time.
